These recess tool holders are ruggedly built for wide and accurate recessing. The tool holder body is hardened and ground throughout. The tapered gib allows accurate adjustment for wear. The shank type recess tool holders may be used for internal forming, as well as grooving and chamfering. They may also be used for undercuts that can not be reached by a standard tool working from the main tool slide. The holder may be actuated in several ways, one by a draw bar anchored to a bracket built on to the cross slide or frame of the machine, or by a stop rod in the holder contacting a turned diameter of the part piece.